Banking and finance

Title

Banking and finance

Creator

Benson, G. A.

Language

English

Source

The American Chamber of Commerce Journal Volume XXVII (Issue No. 7) July 1951

Year

1951

Rights

In Copyright - Educational Use Permitted

Fulltext

Banking and Finance By G. A. Benson Sub-Manager, Port Area Branch National City Bank of New York COMPARATIVE statement of condition of the Central Bank: CONTINGENT ACCOUNT Forward Exchange Sold. P 6,460 As of Dec. 31 As of March 31 As of April 27 As of May 31 ASSETS 1949 1951 1951 1951 in thousand of Pesos International Reserve. . P460.689 P579.119 P583.098 P 561,326 Contribution to International Monetary Fund............................... 30,000 30,000 30,000 30,000 Account to Secure Coinage................................... 113,306 107,570 107,570 107,570 Loans and Advances... . 77,047 55,863 47,338 18,645 Domestic Securities. . . . 92,197 163,088 163,197 234,959 Trust Account — Secur ities Stabilization Fund............................... 6,848 6,848 6,848 Other Assets.................... 20,390 56,562 , 61,208 59,982 P793.629 P999.050 P999.259 Pl,019,330 LIABILITIES Currency— Notes........... P555.576 P664.360 P671.052 P 656,523 Coins........... 74,384 92,680 93,735 93,722 Demand Deposits — Pesos............................... 117,682 194,213 173,224 203,478 Securities Stabilization.. 2,000 6,848 6,848 6,848 Due to International Monetary Fund. . . .’. 22,498 497 499 496 Due to International Bank for Reconstruc tion and Develop ment ............................... 2,389 2,383 2,383 2,383 Other Liabilities............. 2,636 21,275 33,671 36,966 Capital............................... 10,000 10,000 10,000 10,000 Undivided Profits.......... 6,464 3,105 4,157 5,225 Surplus............................... — 3,689 3,689 3,689 P793.629 P999.050 P999.258 Pl,019,330 the banks for the first time in months. Silver coins are still diffidult to get and have been practically replaced by paper notes. The Security Bank and Trust Company, the latest addition to Manila’s banking institutions, opened for business on June 18. It occupies the ground floor of the Consolidated Investment Building on Plaza Goiti. The President of the bank is Mr. Alfonso Calalang, well known banker, who was until recently Deputy Governor of the Central Bank. The Central Bank has announced that the Saturday closing of Manila banks, which originally extended from April 1 to June 15, will be continued until further notice. International reserves held by the Central Bgnk de creased by P21,772,000 during the month. However, the foreign exchange holdings by other banks increased sufficiently in the same period so that total dollar inter national reserves at end of May were $393,000,000 as compared to $382,000,000 at end of April. This compares with a total dollar position of $260,000,000 when the Central Bank instituted exchange control in December, 1949. Loans and advances were down P28,693,000 due to the repayment of loans by Philippine banks and the reduc tion in the Treasury’s overdraft. Domestic securities are up P71,762,000 because of further advances of P73,000,000 to the Philippine Gov ernment secured by Rehabilitation and Development Bonds. Total advances to the Government are now said to be around P187,000,000 secured by Rehabilitation and Development Bonds and F47,000,000 secured by Rehabilitation Finance Corporation Bonds. The past few weeks have witnessed a sharp reversal of the easy money conditions which have prevailed the past year, this having been caused by the comparative flood of import licenses released to merchants in recent weeks. Interest rates are firm but have not yet been re vised upward. Demand for credit is keen and it is reported that banks are pretty well loaned up. The issuance of subsidiary paper notes has alleviated the severe coin shortage that has existed for some time. One- and five-centavo pieces (coins) are coming back to Manila Stock Market By A. C. Hall Hall, Picornell, Ortigas & Company May 19 to June 15 THERE has been an accentuation of disinflationary factors during the past month. The continuing overall improvement in the country’s economy has permitted a liberalization in the Government’s import policy and local merchants are now engaged in a large restocking program. Following as it does upon the first installment of income-tax payments, this will absorb ad ditional large amounts of idle funds in banks and further assist in removing inflationary pressures. In sympathy with the foregoing, there has been a substantial decline in the local market price for gold which is quoted today at approximately Pill per-fine ounce compared to P145 nominal four weeks ago. At today’s price level, indications are that demand for the metal is considerable. Apart from Surigao Consolidated which has moved against the trend as a result of its high production for May, also good mine-development results, other gold and base metal mining issues have followed the deflationary ten dency referred to. Unlike the mining shares, however, prices of leading commercial and industrial securities have ruled firm during the month. This largely reflects genuine investment funds, partly from institutional sources, seeking employment for income purposes. 1950-51 High MINING SHARES High Low Close Change Total Sales 126 83 61 71 295 06 68 50 0051 5 30 085 017 25 135 08 09 27 345 038 10 09 012 25 04 78 0027 2 50 012 0078 08 042 025 06 14 M. S. E. Mining Share Acoje Mining ComAntamok Goldfields. . Atok Big Wedge Min ing Company.......... Baguio Gold Mining Company.................. Balatoc Mining Com pany .......................... Batong Buhay Gold Benguet Consolidated Coco Grove, Inc.......... Consolidated Mines, Inc.............................. Hixbar Gold Mining Company.................. Itogon Mining Com pany .......................... I.X.L. Mining Com pany .......................... Lepanto Consolidated. Masbate Consolidated MindanaoMotherLode Misamis Chromite, Inc.............................. Paracale Gumaus Con solidated ................... San Mauricio Mining Co............................... Surigao Consolidated. Suyoc Consolidated... United Paracale Min.285 .1125 .0031 L50 .07 .017 .175 .115 .042 .67 .032 .35 .014 .17 .295 .0725 .19 .05 .25 .1025 .003 1.30 .06 ,20b Off 0525 Up .05 .0025 120,000 334,100 25 Off .04 1025 Off .0175 2 00b 003 Off30 — 06 Off Off .0005 .20 .01 .0135 .16 .1025 .014 .17 .26 .07 0135 Off 16 Off 1025 Off Up Off Off Off014 17 28 03a Off Up .07 Off .0005 2,720,000 .035 .0075 .035 .025 .0025 285,000 55,000 17,000 304,500 100,000 225

pages

225

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